Fdi policy:

Pankaj Khodaskar (Querist) 19 November 2013 This query is : Resolved
A Pvt. Ltd is an Indian company with 100% foreign shareholding. It is engaged in the sector where 100% FDI is allowed under auto route.
A Pvt. Ltd. is considering a proposal to carry on trading business through e-commerce where it would sell goods to the buyers / customers situated outside India. In other words, it is proposing to enter into retail trade on B2C basis by way of EXPORT of goods outside India. No trading activity would be carried out with the customers in India.

In this context, can A Pvt. Ltd. can undertake export trading activities considering the restrictions on retail trading under FDI policy?

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Sourav Das (Expert) 31 March 2014
Foreign companies can make investments or operate their business in a number of ways as given below: -

·Liaison/representative office

· Project Office

· Branch Office

· 100% Wholly owned subsidiary

· Joint venture company

Financial/Technical/Techno-financial approval is given by

1. Under Automatic route through RBI

2. Government/FIPB/RBI automatic approval is governed by Press Note No. 2 of 2000 subject to sectoral caps.

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